The first set of things are paid demand creation activities.

They strive constantly to improve customer relations.

What's most important to us when we make a video is what the customer sees.

This is what I called the you should be so lucky to have this problem part of the funnel, and that's how you grow the customers you have.

long term, and what are you going to do to grow them in the next couple of years as we.

Another common paid activity is advertising. What kind of advertising?

In customer relationships all the get keep grow metrics, some of which we talked about, some of which you'll discover, what were the customer acquistion costs?

One of the most important metrics to think about now that we have an end to end funnel is something called lifetime value and a lifetime value LTV is not your lifetime but your customer's lifetime.

They could tell you that I want bigger, faster, cheaper status quo.

When I got there, we had zero happy customers.

We want to make sure that we actually listen to the people who eventually will buy this product.

And one of the things we need to understand is what's the archetype or the persona of our customers that we're actually wanting to get and so one of the things that's kind of hard for startups is to realize that getting customers isn't some abstract idea you really need to understand who your customers are and this is not just thinking about selling to consumers.

And in value proposition, the goal of this is to find out that minimum viable product.

As was simulated, the value proposition includes all the features of your product but also the pains and gains you're solving for the customer segment and that's where the market goes.

I mean how do they hear of our products, how do they know about you, and as we'll see later one of the interesting things is there are some customers that are users like in Google

Now if you remember we started here on the left. We didn't earn and paid media.

So those are the 2 goals

The unfortunate part is most startups that are in a new market see something that looks like this and go out of business.

It's not.

Let's take a look.

But for you to be a successful company and actually thinking about how much you could spend on them over here, you need to understand can I get them to spend more and more over time and how to keep them

In a non perfect world, you might just be a user and I'm going to monetize you by getting pairs to pay for the fact that I have lots of users, but acquisition that is acquire, and activation is a 2 parts strategy.

It is a cost effective approach.

We will take it to the potential customers.

It's 0 otherwise.

If in fact, your conversion rate between acquisition activation could be increased.

Yet, we seem to go from order to order or user to user forgetting about thinking about all the time is how can we extract more dollars or usage or whatever is important to us from our existing customers.

Potential customers have been listed.

So it's very important to them to track piracy exactly because of this, and the people who are buying, the pirates, are not their customers anyway, because their customers want the real deal.

Well, hopefully it gets kind of fun because the real metric the way we kind of measure things, the language we use on the web is customer acquisition cost.

And two dollars profit per entrepreneur per day, which is like 700 dollars per year. And of course, it's very beneficial in a lot of ways.

By now, you're intimately familiar with the business model canvass.

So in our last lectures we talked about value proposition, customer segments, distribution channels, customer relationships get, keeping and growing customers.

So on day one, these were their initial hypothesis coming into the class.

We have recently accepted a client who is VampireAmerican.

Now we finally come to the last part of the business model canvas.

I have no idea where my husband is.

So, while the goal in value prop is to figure out the MVP, yes, we il see later the goal in customer segments is to figure out who and what the archetype of the customer is.

As you get out of the building and start talking to these potential customers you need to set up some experiments.

Even though on day 1 you're not thinking about keeping customers because you're desperately worried about getting them, just understand the next thing you're going to be doing is worrying about how to keep your most valuable customer.

It's exactly the same idea we might want to offer loyalty programs, contests and events, blogs, RSS and email, or social media all designed to engage customers.

Well getting customers is just like it sounds.

Then x is going to be 10 times 0.29 is 2.90 minus 3 is negative 0.10.

Well, 0.50 10,000, that cost me 5,000, but the goal isn't to just have people visit, the goal is to get them to the end of the funnel and at the end of the funnel,

Picking up a package, delivering it to our client.